Renewables
Direct electri cation
Energy e ciency
Green hydrogen
H
Heat pumps
Retro t of buildings Technological advancement
High-grade heating
Solar water heaters, direct geothermal use, biomass (low-grade heating) Solar drying, biomass (productive uses)
Heating
Electric industrial application (e.g. arc furnaces
Ship design Operation optimisation Travel avoidance Performance standards Travel avoid a nce Engine design Use of best available technologies
Steelmaking re neries Chemical industry
Industry
FC E Vs
Biofuels
Battery electric vehicles
Land transport
Green ammonia Methanol
Biofuels Wind energy
Short-dist a nce shipping
Shipping
Biojet fuels
Short-dist a nce aviation
Plane design Travel avoidance
Hydrogen and synthetic fuels for aviation
Aviation
Figure 4 Hydrogen as a complement to alternative ways to decarbonise end uses. B ased on: IRENA, IEA, and REN 21, forthcoming, and IRENA, 2020b
In parallel, off-site green hydrogen hubs are expected to play an increasingly important role. Hub-based models allow multiple industrial consumers, including refineries, fertiliser plants, and steel facilities, to aggregate demand and share infrastructure, such as electrolysers, storage, and compression systems. For refineries located near ports or industrial corridors, hub-based supply can reduce capital intensity and provide flexibility to scale volumes over time as costs decline. Capital expenditure planning will be a critical determinant of transition success. Refiners are accustomed to multi-year investment cycles linked to statutory upgrades, fuel quality transitions, and capacity expansions. Integrating green hydrogen investments into these existing planning frameworks can significantly reduce incremental costs. Aligning electrolyser installation, balance-of-plant upgrades, and renewable power procurement with scheduled turnarounds enables a smoother transition while avoiding operational disruptions. The export-oriented dimension of green hydrogen further enhances the strategic relevance for refineries. Green ammonia and green methanol are emerging as globally traded energy carriers, with strong demand signals from Europe and East Asia. Indian refineries located along the eastern and western coasts are well positioned to integrate hydrogen production with downstream ammonia or methanol synthesis and port infrastructure. This creates optionality to serve both domestic decarbonisation objectives and international markets from the same asset base.
From a competitiveness perspective, early adoption of green hydrogen can strengthen the long-term positioning of Indian refineries in an increasingly carbon-constrained global market. As carbon border adjustment mechanisms, sustainability-linked fuel standards, and low-carbon product premiums gain traction, hydrogen intensity will become a differentiating factor in refining economics. Refineries that establish green hydrogen supply chains early are likely to benefit from lower transition risk, improved access to capital, and enhanced resilience against future regulatory tightening. Operationally, the transition will require new capabilities in areas such as renewable power procurement, electrolyser operation, hydrogen safety management, and digital monitoring. However, Indian refiners already possess strong engineering, project management, and operational expertise, enabling them to absorb these new competencies with targeted capability development rather than wholesale organisational restructuring. In this context, green hydrogen should be viewed not as an isolated decarbonisation initiative but as a strategic enabler of refinery transformation (see Figure 4 ). When aligned with the NGHM, supported by SIGHT incentives and integrated with renewable energy and export infrastructure, green hydrogen offers Indian refineries a credible pathway to decarbonisation while preserving asset value and competitive relevance. Ishita Bansal ishitabansal.me@gmail.com
Refining India
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